Get 1 year of free community web site hosting from Community123.com!
Monday, November 29, 2021











HOATalk is a free service of Community123.com:

Easy to use website tools to help your board
Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.
Subject: Late Fees & Budget Items
Prev Next
Please login to post a reply (click Member Login on the menu).
Author Messages
TomJ
(Arizona)

Posts:42


05/10/2006 11:47 AM  
For all HOAs that charge a late fee for late assessment payments, who(or whom I can never get that correct) gets this fee, Management Company or HOA?

Our builder gave ours to the Management Company and the Management Company said that was normal. I contaced other HOAs and an attorney and found out it was not so we changed it.

Also how should money that the homeowner pays get back into the HOA funds. For example, we have a fund for CC&R compliance. In that fund they are funds for attorney fees. When a homeowner has to pay attorney fees because of a legal problem such as forclosure, where should the homeowner fees for attorney go? We went around and around about the funds for gate remotes and never got a satisfactory answer. We purchase gate remotes to sell to homeowners at a profit then I have never found where the money the homeowner pays goes but every year we have a budget item for gate remotes.

I have asked our Management Company and they are using smoke and mirrors to explain the procedure. But all audits have been OK but so was Enron's.
KevinH
(Texas)

Posts:53


05/10/2006 12:04 PM  
Has the board considered other Management companies?

At least get some quotes, so that if you decide to change (for whatever final reason you decide on), you'll have an estimate. Look around your area and see which ones other HOAs use and have confidence in.

When I start to feel the management company is not be honest and upfront, big warning flags appear. It happened to us and as a board, we decided to change our MC. It was a good choice, we have since found one for far less cost and better service.

Unless you feel there is still something to salvage with that business relationship, I'd say start looking elsewhere.

If you cannot see the forest for the trees, back up and get a better view. Don't start to clear a path while still blind.
RogerB
(Colorado)

Posts:5067


05/10/2006 1:06 PM  
Tom, the answers depend on the Agreement the HOA has with the MC. These problems would not occur if your Board had developed a sound Agreement. Late charges should be paid to the HOA and the MC can charge the HOA a collection fee if it is in the Agreement. With GAAP all funds must be listed in accounting reports which the Board should require monthly. If the MC reports do not identify funds this is a RED FLAG and I would change MC.

And it looks like you are wasting money using this auditor. I have seen so called audit that are meaningless. In fact one company's audit was simply a reproduction of the MC's yearly Income Statement. That statement was wrong. A tax accountant used the same yearly Income Statement and filed an erroneous report showing no interest income.
TomJ
(Arizona)

Posts:42


05/10/2006 8:58 PM  
I agree with you on changing the MC but none of the other board members want to. The president did not because the MC rep gave him business at her other HOAs since he is an electircal contractor. His term is up in a couple of months so we will see about that.

Arizona law requires an annual audit or at least a review by an auditor so we are locked into that.

Another thing, our CC&Rs require an interest payment on all over due assessments and the MC flatly refuses to charge it. The representative words to me were "It isn't going to happen" but had no reply when I asked why she wasn't enforcing all CC&Rs. She is now gone so I will address it again.
JulieS
(Georgia)

Posts:412


05/11/2006 7:45 AM  
Our covenants set a specified percentage to be charged 10 days after the assessment is due as a late fee. Our MC charges $10 a month to the delinquent account and it is paid to them per their contract.
Please login to post a reply (click Member Login on the menu).
Forums > Homeowner Association > HOA Discussions > Late Fees & Budget Items



Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.







General Legal Notice:  The content of forum messages are from the posting member and have not been reviewed nor endorsed by HOATalk.com.  Messages posted by HOATalk or other members are for informational purposes only, are not legal or professional advice and do not constitute an attorney-client relationship.  Readers should not act upon this information without seeking professional counsel.  HOATalk is not a licensed attorney, CPA, tax advisor, financial advisor or any other licensed professional.  HOATalk accepts ads from sponsors but does not verify sponsor qualifications nor endorse/guarantee any sponsor's product or service.
Legal Notice For Messages Posted by Sponsoring Attorneys: This message has been prepared by the sponsoring attorney for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Readers of HOATalk.com should not act on this information without seeking professional counsel. Please do not send any sponsoring attorney confidential information unless you speak with the sponsoring attorney or an attorney from the sponsoring attorney’s firm and get authorization to send that information to them. If you wish to initiate possible representation, please contact an attorney in the firm of the sponsoring attorney. Sponsoring attorneys that post messages here are licensed to practice law in a specific state or states as indicated in their message signature or sponsor’s profile page. (NOTE: A ‘sponsoring attorney’ is an attorney that is a HOATalk.com official sponsor and is identified as such in the posted message or on our sponsor page.)

Copyright HOA Talk.com, A Service of Community123 LLC ( Homeowners Association Discussions )   Terms Of Use  Privacy Statement